All of the following are common reasons for a company to issue convertible bonds except:
A)The company prefers to issue shares, but is unsure of the present stock market and the timing.
B)A bond that has a favourable component such as a conversion privilege, can carry a lower interest rate than a "straight" bond.
C)The bonds are issued to controlling shareholders so that they can receive interest payments in preference to other shareholders.
D)All of these answers are correct.

Question

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The Answer of All of the following are common reasons for a company to issue convertible bonds except:
A)The company prefers to issue shares, but is unsure of the present stock market and the timing.
B)A bond that has a favourable component such as a conversion privilege, can carry a lower interest rate than a "straight" bond.
C)The bonds are issued to controlling shareholders so that they can receive interest payments in preference to other shareholders.
D)All of these answers are correct.

All of the Following Are Common Reasons for a Company